By Tae Kim

Amazon.com will surpass Walmart to become the largest domestic retailer, according to J.P. Morgan.

On Monday, internet analyst Doug Anmuth reiterated his Overweight rating and $240 price target for Amazon shares, citing the prospect of higher growth next year. Amazon shares rose by 0.2% to $210.04 in morning trading Monday.

"We expect growth re-acceleration against a likely more stable macro environment in 2026," he wrote. "Amazon remains our best idea."

The gross merchandise value of Amazon's U.S. sales will increase by 8% to $593 billion this year, surpassing Walmart's $573 billion and 4% growth rate, Anmuth predicts. He said Amazon is gaining share from its faster delivery speeds and large selection of goods.

"We believe Amazon's flexibility in pushing first-party vs. third-party inventory and the Prime membership serve as major advantages in its Stores business," he wrote.

Last week, CEO Andy Jassy wrote in a note to employees that as Amazon rolls out artificial intelligence tools, he expects the technology will reduce the size of the company's workforce over the next few years.

Amazon stock has declined by 4% this year, versus a 1% rise in the Nasdaq Composite.

Write to Tae Kim at tae.kim@barrons.com

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June 23, 2025 12:25 ET (16:25 GMT)

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